A1 sold its stake in EuroDon group to Vnesheconombank
A1 SOLD ITS STAKE IN EURODON GROUP TO VNESHECONOMBANK
Investment Company “A1” (“At”) has closed a deal to dispose 40% shares of LLC “EURODON” (the largest turkey producer in Russia) and 49% stakes in three companies related to EURODON (together, the “Eurodon Group”) to the nomine of Vnesheconombank (“VEB”). The transaction was of a complex nature.A1 bought the above stakes on 2 February 2016. By the time of the acquisition by A1, VEB was a long-term business partner of Eurodon Group. After the change in Eurodon Group’s shareholding, VEB has shown its interest in the project as a shareholder and initiated talks with A1. As a result of several rounds of negotiations with VEB, it proposed A1 favourable conditions for the purchase of its stake in Eurodon Group.
As a result of the transaction, VEB became an owner of 40% stake in LLC “EURODON” and 49% stakes in other Eurodon Group companies: OOO Ursdon, OOO Metal-Don and OOO Irdon.
As part of this package transaction, the parties settled all claims of A1 against the founder of the Eurodon Group, Vadim Vaneev. The transaction has been closed.
“We considered Eurodon as a long-term project, but being an investment company, in the preparation of competitive bids in the framework of a project, we can afford withdrawing from the shareholding at any point in the investment round. That was done in this case”, the media relationship contact at A1 said.
LLC “EURODON” is the largest Russian producer of turkey meat with a market share of 25%. It was founded by Vadim Vaneyev in 2003. The owners of LLC “EURODON” include Vadim Vaneev (45% stake), Valery Gergiev, art and general director of the Mariinsky Theatre, a conductor (15% stake).
Eurodon Group includes: Usrdon (the only industrial facility to produce turkey hatching eggs in Russia), Metal-Don (the production of steel structures, sandwich panels and hot galvanised metal) and Irdon (House-Building Enterprise).
Investment company A1 is a leading investment company in Russia, a key investment unit of Alfa Group, one of the largest privately owned financial-industrial conglomerates in the Russia.
It was founded in 1989 (till 2005 - Alfa-Eco) as the first and basic structure of the Alpha Group consortium. The main owner of Alfa Group is Mikhail Fridman. For more than 20 years of activities A1 has implemented a number of projects in Russia and CIS with Alfa Bank, THK-BP, VimpelCom, X5 Retail Group and Rosvodokanal becoming stand-alone business entities in the Alfa Group.
Vnesheconombank (VEB) is a national development bank that promotes the implementation of the state social and economic policies, improvement of the competitiveness of the national economy and its modernisation through innovations. It was established on 8 June 2007 through the reorganisation of Vnesheconombank of the USSR with the accession to OAO Russian Bank for Development and ZAO Roseximbank. It is wholly-owned by the Russian Federation. According to the memorandum of financial policy, Vnesheconombank lends to projects worth more than 2 billion roubles with a loan term of 5 years and more.